5.7   You can also claim for motor expenses in accordance with the HMRC approved FPCS rates, which apply to business miles done in your personal car.
A4 size, similar in concept to the Employee Record Card, fits a standard 2 or 3 ring binder.
The Zions Sign On Sign Off Attendance record is used to record employee starting and stopping times daily. Ana Reyes works as a Customer Care Ambassador at Better World Books where her caring personality has an opportunity to shine. Reyes doesn’t just enjoy helping customers, she also enjoys the collaborative and open work environment at Better World Books. The caring focus of Better World Books also stands out to Reyes who values working for a company that actively reaches out to help people globally and locally. Reyes has participated in a few company volunteer events including one to help create comfort vests for children with autism, which she said particularly stood out to her. The caring touch Reyes brings to her work is not only noticed by customers, but also by her coworkers.
This is a€?Appraisal Methodsa€?, section 11.2 from the book Beginning Management of Human Resources (v. This content was accessible as of December 29, 2012, and it was downloaded then by Andy Schmitz in an effort to preserve the availability of this book. PDF copies of this book were generated using Prince, a great tool for making PDFs out of HTML and CSS. For more information on the source of this book, or why it is available for free, please see the project's home page. DonorsChoose.org helps people like you help teachers fund their classroom projects, from art supplies to books to calculators. It probably goes without saying that different industries and jobs need different kinds of appraisal methods. Within the categories of performance appraisals, there are two main aspects to appraisal methods.
The graphic rating scaleThis type of performance evaluation lists traits required for the job and asks the source to rate the individual on each attribute., a behavioral method, is perhaps the most popular choice for performance evaluations. Many organizations use a graphic rating scale in conjunction with other appraisal methods to further solidify the toola€™s validity. An example of a graphic rating scale is shown in Figure 11.1 "Example of Graphic Rating Scale". In an essay appraisalA type of performance appraisal in which the source answers a series of questions about the employeea€™s performance in essay form., the source answers a series of questions about the employeea€™s performance in essay form. A checklist method for performance evaluations lessens the subjectivity, although subjectivity will still be present in this type of rating system. This method of appraisal, while more time-consuming for the manager, can be effective at providing specific examples of behavior.
For certain jobs in which productivity is most important, a work standards approachA performance evaluation method in which a minimum level of expectation is set and the employeea€™s performance evaluation is based on this minimum level of productivity.
In a ranking method systemEmployees in a particular department are ranked based on their value to the manager or supervisor, which is used as a performance evaluation method.
To make this type of evaluation most valuable (and legal), each supervisor should use the same criteria to rank each individual.
Critics have long said that a forced ranking system can be detrimental to morale; it focuses too much on individual performance as opposed to team performance. The advantages of a forced ranking system include that it creates a high-performance work culture and establishes well-defined consequences for not meeting performance standards. In a forced distribution system, like the one used by GE, employees are ranked in groups based on high performers, average performers, and nonperformers. In a paired comparison system, the manager must compare every employee with every other employee within the department or work group. Management by objectives (MBOs)A type of performance appraisal in which the manager and employee work together to develop objectives, and at the end of the period the employee is measured on whether he or she met the objectives. To make MBOs an effective performance evaluation tool, it is a good idea to train managers and determine which job positions could benefit most from this type of method. A BARS method first determines the main performance dimensions of the job, for example, interpersonal relationships. No one performance appraisal is best, so most companies use a variety of methods to ensure the best results. When developing performance appraisal criteria, it is important to remember the criteria should be job specific and industry specific.
The performance appraisal criteria should be based on the job specifications of each specific job.
In a graphic rating performance evaluation, employees are rated on certain desirable attributes. An essay performance evaluation will ask the manager to provide commentary on specific aspects of the employeea€™s job performance. A checklist utilizes a yes or no rating selection, and the criteria are focused on components of the employeea€™s job. The work standards performance appraisal approach looks at minimum standards of productivity and rates the employee performance based on minimum expectations. In a ranking performance evaluation system, the manager ranks each employee from most valuable to least valuable. An MBO or management by objectives system is where the manager and employee sit down together, determine objectives, then after a period of time, the manager assesses whether those objectives have been met. An MBOa€™s objectives should be SMART: specific, measurable, attainable, results oriented, and time limited. A BARS approach uses a rating scale but provides specific narratives on what constitutes good or poor performance.
Review each of the appraisal methods and discuss which one you might use for the following types of jobs, and discuss your choices.
You can generate your prime records (invoices etc) using Word or Excel or similar applications, and you can store your records on DropBox.
We do not recommend that you buy bookkeeping software unless you employ an in-house bookkeeper or unless you yourself are a trained bookkeeper. Well if you follow our system exactly as it is set out below you should always get sound results.
The only exception to this rule is for businesses that operate retail shops and use cash registers, and we don’t look after any businesses like that! You must not use the business bank accounts to pay for private purchases, and that includes putting fuel into a privately owned car, or eating out too often at the business’s expense.
For example, you could get one in year 2 and then another in year 7, and then a big gap until the next one in year 18.
If that seems a bit onerous, then maybe now is the time to slim down the number of “bank accounts” that your business really needs. We know of some cases where a private credit card is used as though it were a business credit card. When preparing your records, you must ensure that your bank statements cover the whole period in question. If a VAT return were to be prepared using the known data (26 Dec to 25 Mar) then the figures are not “true” and worse still, your declaration on the VAT return would be false and your year end accounts would not comply with the Companies Acts. However, a 25 Apr bank statement may take a couple of days to get to you and then (if you’re quick) another couple of days to get to us, arriving on 29 Apr. A good starting point for Step 5 is the pile of expense receipts which you had left over from Step 3 above. You can no longer seek to engineer an artificial reality, especially when it comes to payroll.
If we run a simple payroll for you (following the small salary and big dividend method) it is your responsibility to make the correct bank transfers at the correct time.

Steadily, as the trading year progresses, these forecasts become more and more accurate and that enables you to prepare a suitable tax reserve and to avoid any nasty shocks!
It’s nothing much to worry about as we all know how to keep things on a level playing field.
If you have PCG Plus membership then you are insured in the event that costly enquiries arise.
Also, the declared yield is not intended to be the minimum number of pages that the cartridge will print; page yield data is intended to estimate the average yield expected from a particular cartridge when measured using the various industry standard testing processes. Reyes’ job is to help customers with issues that arise such as tracking their orders, fixing an order that was shipped incorrectly, helping expedite orders and helping customers who might need assistance placing an order. She also appreciates that Better World Books brings in other opportunities such as on-site blood drives, which make it easy for employees to give back while they are at work.
She has several times been named “Most Valuable Bookerfly,” which is an employee-nominated honor given to those who exceed expectations by going above and beyond in their work.
See the license for more details, but that basically means you can share this book as long as you credit the author (but see below), don't make money from it, and do make it available to everyone else under the same terms. However, the publisher has asked for the customary Creative Commons attribution to the original publisher, authors, title, and book URI to be removed.
For our purposes, we will discuss some of the main ways to assess performance in a performance evaluation form.
First, the criteriaIn performance evaluations, the aspects the employee is being evaluated on. This type of evaluation lists traits required for the job and asks the source to rate the individual on each attribute.
For example, some organizations use a mixed standard scaleSimilar to a graphic rating scale, this scale includes a series of mixed statements representing excellent, average, and poor performance, and the manager is asked to rate a a€?+a€? (performance is better than stated), a€?0a€? (performance is at stated level), or a€?a?’a€? (performance is below stated level)., which is similar to a graphic rating scale. With a checklist scaleA performance evaluation method in which a series of questions is asked and the manager simply responds yes or no to the questions., a series of questions is asked and the manager simply responds yes or no to the questions, which can fall into either the behavioral or the trait method, or both. With a critical incident appraisalA performance evaluation method in which the manager is asked to record examples of effective behavior and ineffective behavior of the employee during the time period between evaluations., the manager records examples of the employeea€™s effective and ineffective behavior during the time period between evaluations, which is in the behavioral category. Otherwise, if criteria are not clearly developed, validity and halo effects could be present.
If they are not made public, morale issues may still exist, as the perception might be that management has a€?secreta€? documents. In recent research, a forced ranking system seems to correlate well with return on investment to shareholders. The trouble with this system is that it does not consider that all employees could be in the top two categories, high or average performers, and requires that some employees be put in the nonperforming category.
Each employee is compared with another, and out of the two, the higher performer is given a score of 1. You may find that for some more routine positions, such as administrative assistants, another method could work better. Then the tool utilizes narrative information, such as from a critical incidents file, and assigns quantified ranks to each expected behavior. As you are sorting through your responsibilities, you receive an e-mail from HR outlining the process for performance evaluations. There are a number of different rating methods, including scales of 1a€“5, yes or no questions, and essay.
This method is often used for sales forces or manufacturing settings where productivity is an important aspect. This can create great development opportunities for the employee and a good working relationship between the employee and manager. We do not recommend any of the online accounting software solutions unless you’re a trained accountant.
So, you will need a system which generates an invoice every time you want a customer to pay for something. Even if your customer gives you a self billing invoice, you still need to prepare a proper invoice which will stand up to scrutiny from HMRC!
If you want to show a customer reference on your documents you can, but show it as a completely separate entity and not as part of the invoice number.
If you do, then you’ll end up paying more tax and more National Insurance on these benefits in kind. You are likely to get a VAT records inspection once every six years so you should conscientiously start keeping all of your VAT receipts now. If your statements are issued on paper on (say) the 25th of every month, you may want to get that changed. And, as the 31 Mar VAT return is due in on 30 Apr there is no practical time left to get things done. That’s a whole lot easier than fiddling around with the crazy download tool that the bank gave you! This step applies to all people who are employees, or directors of limited companies, or partners in business partnerships. If it is, then divide this pile of personal expense receipts into two, the ones which make no mention of VAT and the ones which are proper VAT receipts.
Alternatively use the proformas from the links below and prepare a PDF of your completed form. The quarterly reports dovetail into the year end accounts work, and that dovetails into the tax return work. Actual yield varies considerably based on factors such as the content of printed pages, typical printer job size, the environmental conditions during operation and the amount of colour printing relative to monochrome printing.
You may also download a PDF copy of this book (27 MB) or just this chapter (3 MB), suitable for printing or most e-readers, or a .zip file containing this book's HTML files (for use in a web browser offline). Of course, these will change based upon the job specifications for each position within the company. A discrete scaleA scale used in performance evaluations, uses a number of different points, such as a 1a€“10 scale.
This scale includes a series of mixed statements representing excellent, average, and poor performance, and the manager is asked to rate a a€?+a€? (performance is better than stated), a€?0a€? (performance is at stated level), or a€?a?’a€? (performance is below stated level).
These statements may include strengths and weaknesses about the employee or statements about past performance.
Another variation to this scale is a check mark in the criteria the employee meets, and a blank in the areas the employee does not meet.
When it is time for the employee to be reviewed, the manager will pull out this file and formally record the incidents that occurred over the time period.
With this results-focused approach, a minimum level is set and the employeea€™s performance evaluation is based on this level. This system is a comparative method for performance evaluations.The manager will have a list of all employees and will first choose the most valuable employee and put that name at the top. However, many Fortune 500 companies use this system and have found it works for their culture. This method is results oriented and similar to the work standards approach, with a few differences. In this system, there is a specific narrative outlining what exemplifies a a€?gooda€? and a€?poora€? behavior for each category. You are also notified that you must give two performance evaluations within the next two weeks.
The downside is the tendency to record only negative incidents and the time it can take to record this. We want a proper set of prime records from our clients and that enables us to do the books and the accounts professionally, using professional software and professional staff. If you need to use your private credit card to make business purchases then you will need to follow the “Expense Receipts” process at Step 5 below. Statements which are issued in the first week of the month allow you to build up a clear picture of the whole of last month, whereas statements which are issued in the last week of the month do not.

If you’re self employed (and you haven’t pushed everything though your business bank account) you will need to pretend that you’re an employee for this step. We do sample checking of receipts and we will definitely want to check the supporting documentation for anything big or for anything which is out of character with your business. It’s simply a case that annual membership of the PCG gives peace of mind and may minimise the problems caused by enquiries. She likes being able to take the extra steps to help resolve issues in a way that works best for the customer whenever possible. I work with a lot of good people and friendly people,” says Reyes who values being able to ask people in other departments to help solve problems and find creative solutions. In addition to industry-specific and job-specific methods, many organizations will use these methods in combination, as opposed to just one method.
Second, the ratingThe type of scale that will be used to rate each criterion in a performance evaluation. The challenge with this format is that it doesna€™t allow more detailed answers and analysis of the performance criteria, unless combined with another method, such as essay ratings.
The disadvantage of this method is the tendency to record only negative incidents instead of postive ones. For example, if a sales person does not meet a quota of $1 million, this would be recorded as nonperforming. Then he or she will choose the least valuable employee and put that name at the bottom of the list. This method takes a lot of time and, again, must have specific criteria attached to it when comparing employees.
First, the manager and employee sit down together and develop objectives for the time period. The advantage of this type of system is that it focuses on the desired behaviors that are important to complete a task or perform a specific job. Even if there are no transactions on any given account in any given month, we still need a statement which shows that. This system is for things like taxi receipts, the books of postage stamps, or the toll for the Dartford Tunnel. By keeping all of this on DropBox you will have the right records in the right place if and when there is a records inspection. If not, and if your system is deficient, do something about it now and make it bullet proof! She wants customers to know that they aren’t just a number and that they are being listened to. IBM, IBM was able to successfully defend accusations of age discrimination because of the objective criteria the employee (Thomas) had been rated on. The disadvantage of this type of method (when not combined with other rating systems) is that the managera€™s writing ability can contribute to the effectiveness of the evaluation.
However, this method can work well if the manager has the proper training to record incidents (perhaps by keeping a weekly diary) in a fair manner.
At Exxon, the legal department attorneys were annually evaluated and then ranked based on input from attorneys, supervisors, and clients. To make a ranking system work, it is key to ensure managers have a firm grasp on the criteria on which employees will be ranked. Then when it is time for the performance evaluation, the manager and employee sit down to review the goals that were set and determine whether they were met.
You arena€™t sure if you should base their performance on what you see in a short time period or if you should ask other employees for their thoughts on their peersa€™ performance.
A copy of “a NIL document” will let us know (in any future records inspection) that there were in fact no transactions, as opposed to leading us to think that there is a missing document!
As much as we would like to get these suppliers to invoice your business directly, they tend to expect cash or some other form of instant payment.
If you cannot keep a full set of bank statements and a full set of invoices, should you really be trying to run your own business? The first is the trait methodA category of performance evaluation in which managers look at an employeea€™s specific traits in relation to the job, such as friendliness to the customer., in which managers look at an employeea€™s specific traits in relation to the job, such as friendliness to the customer. A continuous scaleA scale used in performance evaluations that uses a continuum; the manager puts a mark on the continuum that best represents the employeea€™s performance.
Also, managers may write less or more, which means less consistency between performance appraisals by various managers.
This approach can also work well when specific jobs vary greatly from week to week, unlike, for example, a factory worker who routinely performs the same weekly tasks. For example, if the quota isna€™t made, perhaps the employee just had a bad month but normally performs well.
Obviously, there is room for bias with this method, and it may not work well in a larger organization, where managers may not interact with each employee on a day-to-day basis. Based on the feedback, each attorney for Exxon was ranked based on their relative contribution and performance.
In GEa€™s system, the bottom 10 percent are usually either let go or put on a performance plan.
Companies using forced rankings without set criteria open themselves to lawsuits, because it would appear the rankings happen based on favoritism rather than quantifiable performance data. As you go through the files on the computer, you find a critical incident file left from the previous manager, and you think this might help. If you paid for such things with personal cash or with a personal card, then you must keep a record of this in order to claim back such things as allowable expenditure of the business. The behavioral methodA category of performance evaluation in which managers look at individual actions within a specific job. For example, if a€?communicationa€? and a€?interaction with clienta€? are two criteria, the interaction with the client may be weighted more than communication, depending on the job type. This approach works best in long-term situations, in which a reasonable measure of performance can be over a certain period of time.
The employee also has a€?buy-ina€? since he or she helped set the goals, and the evaluation can be used as a method for further skill development.
As you look through it, it is obvious the past manager had a€?favoritea€? employees and you arena€™t sure if you should base the evaluations on this information. This method is also used in manufacuring situations where production is extremely important.
When Roper was in the bottom 10 percent for three years and was informed of his separation with the company, he filed an age discrimination lawsuit.
This method is best applied for positions that are not routine and require a higher level of thinking to perform the job.
Comparative methodsA category of performance evaluation in which managers compare one employee with other employees. For example, in an automotive assembly line, the focus is on how many cars are built in a specified period, and therefore, employee performance is measured this way, too. To avoid these issues, the best way to develop and maintain a forced ranking system is to provide each employee with specific and measurable objectives, and also provide management training so the system is executed in a fair, quantifiable manner.
To be efficient at MBOs, the managers and employee should be able to write strong objectives. Since this approach is centered on production, it doesna€™t allow for rating of other factors, such as ability to work on a team or communication skills, which can be an important part of the job, too. Results methodsA category of performance evaluation in which managers are focused on the accomplishments of the employee, such as whether or not they met a quota.

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